Which of the following are common valuation multiples?

The identification of common valuation multiples is essential in investment analysis as these metrics provide a means of comparing the relative value of companies. The correct answer encompasses well-known valuation multiples used in equity valuation.

The P/E ratio, or Price-to-Earnings ratio, is a widely-used valuation metric that compares a company's current share price to its earnings per share (EPS). This ratio provides an indication of how much investors are willing to pay for each dollar of earnings, making it a fundamental tool in understanding a company's valuation relative to its earnings.

The EV/EBITDA multiple, or Enterprise Value to Earnings Before Interest, Taxes, Depreciation, and Amortization, reflects the total value of a company (including debt) relative to its operating performance. This ratio is particularly useful in comparing companies with different capital structures, as it is not affected by how a company finances its operations.

The Price/Sales ratio is another useful valuation multiple that compares a company's stock price to its revenues. This can be particularly relevant for companies that are not yet profitable, as it provides a measure of how much investors are willing to pay for each dollar of sales.

In contrast, the other sets of choices provided do not consist of commonly used valuation multiples. They may include important financial